801 Sierra Vista Way #28 Way

Yreka, CA 96097

$139,000F

2 bd · 1.0 ba · 950 sqft · Built — · Condo · Active · 123 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,126/mo
• Mortgage (P&I): −$729
• Tax + insurance: −$148
• HOA: −$290
• Vac / Maint / Mgmt: −$237
• Net cashflow: $-277/mo
• Annual: $-3,325/yr
• Cap rate: 3.90%
• Cash-on-cash: -8.54%
• DSCR: 0.62
• 1% rule: 0.81%
• Cash to close: $38,920

Investor read

• This is a 2-bed/1.0-bath condo listed at $139k.
• At list price, monthly cash flow is $-277 ($-3k/yr) — negative.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $113k (19.0% below list).
• It's been on market 123 days — a 12% lower offer ($122k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $113k (19.0% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $961 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads 60/100 on livability (#602 in CA) — a middle-class / working-renter tenant base. Strengths: health & safety A+, housing A; Watch: crime F, amenities F, commute F.
• Yreka Union High (town): math 25% / reading 65% proficiency, ranked #630 of 1,400 in CA (top 45%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Evergreen Elementary (math 27% / reading 17%, grade F, #1,179 of 1,571 statewide, top 78%, 447 students, 71% FRL); Jackson Street Elementary (math 14% / reading 27%, grade F, #412 of 498 statewide, top 83%, 438 students, 70% FRL); Yreka High (math 37% / reading 82%, grade C+, #205 of 1,170 statewide, top 19%, 669 students, 52% FRL).
• Watch-outs: HOA is 26% of rent.
• Market conditions: 122 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 50 units permitted in Siskiyou County in 2024 (0 in 5+ unit buildings).
• Siskiyou County population projected at -26% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts since 20y ago; this cycle's ask has dropped $10k (7%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $95k; 46% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Climate carrying-cost: severe wildfire risk; extreme-heat days projected 6→13/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 3.9% vs local median 2.9% in Yreka — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• It's been on market 123 days. Have you received any prior offers? Is the seller open to a 19% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?